Best Factoring Companies
Immediate cash flow for your business with affordable rates and flexible terms.
Business relationships with the highest ethical values and principles in the industry.
Factoring services with the professional and personal care that you'll appreciate.
Factoring companies come and go, but these companies have stood the test of time.
These factoring companies strive for excellence and deliver quality service to customers.
People that love helping you and your business succeed and grow to the next level.
About CapitalPlus Construction Services
CapitalPlus, founded in 1998 and based in Knoxville TN, is well known for their outstanding reputation, and has spent the last 15 years focusing on the construction industry. Led by founder and President Scott Applegate, the company is a blended team of financial, project management and construction industry experts with more than 85 years of combined experience. They’re highly sought after by construction companies across the country for their ability in leveraging the power of invoice factoring to fund high-end projects. Their percentage of repeat clients is a clear indication of the value CapitalPlus provides, solving their clients’ financial challenges while giving them peace of mind and the confidence to grow their business without stress.
About FSW Funding
FSW Funding is a national factoring and asset-based lender headquartered in Phoenix, Arizona. FSW was founded in 2001 with the goal of offering flexible and affordable factoring programs to small and mid-sized businesses. Since that time, we have grown into a company with an annual lending volume of approximately $400 million to $450 million and have become a respected member of the finance community.
About Mazon Associates
Mazon Associates is the oldest factoring company in Texas. In their 45 years of providing invoice factoring services, they've established themselves as seasoned professionals with a reputation for incredible customer service. Second-generation family owners, Lisa and Shelley, have more than 25 years each in their respective roles as company leaders. Their clients rave about the quality service they receive from the entire staff of Mazon Associates. When you factor in the their simple rates and contract terms, Mazon is a sure bet for any small business looking to improve cash flow.
About Security Business Capital
Security Business Capital (SBC) is dedicated to providing accurate, unbiased lending opportunities to small businesses across a myriad of industries. SBC bases its firm on their employee’s ethics, integrity, and above all, superior customer service. SBC is made of a team of financial experts that not only offer unique and flexible invoice factoring solutions to their national clients but form lasting relationships with the brands who put trust in their practices. Their same-day funding financial solutions allow them to empower small business owners and help their clients achieve all their business’ financial and personal goals.
“Our award-winning factoring companies represent the cream of the crop. Great terms, solid customer service and outstanding leadership.”
Accounts receivable factoring
Invoice factoring, or accounts receivable factoring, solves the cash flow problem caused by your customers’ trade credit terms. Trade credit is a business-to-business (B2B) agreement in which your customer purchases goods or services on account without paying you up-front.
Credit terms are typically 30 days or more, depending on your industry and customer. Factoring companies advance you cash for your new invoices, so you don’t have to wait for 30, 45 or 60+ days to receive your hard-earned cash.
Factoring companies offer rates as low as 1% for the largest businesses that generate millions in revenue each month from AAA rated customers. Smaller businesses can expect to pay anywhere between 2% to 5% of the invoice amount depending on monthly factoring amount, invoice volume, and days outstanding.
Factoring companies don’t advance the full amount of your invoices. They hold a reserve as an allowance for any unexpected bad debts or short-falls. Advance rates are typically 75% to 90%.
Contract terms range anywhere from one month to 2 years, with some factoring companies offering a no-term contract that lets you cancel at any time.
Many factoring companies offer non-recourse factoring which is a credit guarantee that protects you if your customer doesn’t pay. Non-recourse factoring usually costs more than recourse, but it may be worth the insurance. Non-recourse only applies to losses resulting from credit issues such as insolvency or bankruptcy. No matter the recourse option, you’re always liable for disputes, faulty goods or incorrect billing.
How accounts receivable factoring works
- After completing your sale or service, you send your invoice to the factoring company.
- The factoring company verifies the invoice is correct.
- The factoring company funds your bank account, often the same day.
- The factoring company collects the accounts receivable from your customer.
- The factoring company sends you the reserve as final payment.